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Analysis of Mueller Company's accounts show that as a result of a single transaction, both cash and notes payable increased by $10,000. Which of the following transactions would have caused this increase?

1. Issuing common stock for cash.2. Borrowing cash and signing a promissory note.3. Purchasing equipment and signing a promissory note.4. Collecting cash from a customer

Respuesta :

Answer:

2. Borrowing cash and signing a promissory note.

Explanation:

The given transactions journal entries are as follows:

1. Cash A/c Dr XXXXX

          To Common Stock A/c XXXXX

(Being the issuance of the common stock is recorded)

2. Cash A/c Dr  XXXXX

             To Notes payable A/c  XXXXX

(Being the cash borrowed is recorded)

3. Equipment A/c Dr  XXXXX

                  To Note payable A/c  XXXXX

(being the equipment is purchased)

4. Cash A/c Dr  XXXXX

           To Account receivable A/c  XXXXX

(Being the cash is collected)

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